The study sought to evaluate the challenges facing effective implementation of supply chain management of firms in the milk industry in Kenya. In particular the study ought to achieve the following specific objective: to determine the effect of organizational structure, information technology, strategic alliances, level of skills and training among staff on effective implementation of SCM of the firms in the milk industry. From the literature reviewed, there is a need to evaluate the key challenges that face the integration, collaboration and flow of information within the milk firms. This will help to determine whether the current low performance and high milk products prices in these firms compared to the informal milk supply chain is as a result of these challenges. A descriptive research design was adopted. The study respondents were the supply chain managers in the milk processing firms in Kenya. The study will relied on primary data which was collected through semi-structured questionnaires that were administered to administrators charged with the management of supply chain within the selected firms. Data analysis was done using descriptive statistics namely percentages, mean and standard deviation through the help of SPSS version 17. Multiple Linear Regression analysis was done to establish the relationship between the independent variables and the dependent variable. Data presentation will be done using tables, pie charts and graphs. The study was valuable to the managers in the milk industry and scholars.

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